The PVC pipe industry will face severe market challenges
The PVC pipe industry will face severe market challenges
In our country, the PVC pipe industry has a good environment for development, but that didn't make it easy for plastic tubing domestic enterprises forward steps, raw materials prices, since 2003, formed by pressure overwhelm enterprises, especially in PVC resin prices soared, some small and medium-sized enterprise strength is not strong is struggling, the edge of the loss-making, PVC pipe enterprise overall is faced with severe challenges.
The cost of raw materials skyrocketed
Since 2003, as a result of world crude oil prices rise, cause plastics raw material market prices rallied in the world, the international market price, domestic polypropylene, polyethylene, polyvinyl chloride (PVC) the price also is in the upswing. PVC resin, in particular, for electricity tension makes the main raw material of PVC chlorine gas tight goods price, PVC prices higher, plus the final victory of the anti-dumping investigation in September 2003, double factors spurred the prices of PVC resin, for PVC pipe companies only PVC raw materials rise in price this piece, increases the product cost more than 20%.
The variety of single internal and external diseases
The huge market volume and lower entry threshold make plastic tube materials have been a hot item in domestic investment for the past few years. Because investment blindly, low-end product excess capacity, its vicious effect has begun to appear. With market share of the largest PVC pipe enterprise as an example, the products are still concentrated in urban and rural water supply and drainage pipe and pipe fittings, rainwater drainage pipe and pipe fittings, causes the market tends to saturation capacity, increase the competitive strength in the field of the product. In order to compete for the market, some enterprises adopt price-driven strategy, especially small enterprises to conduct low price dumping with inferior products, and the price war is becoming more and more intense, in a situation of vicious price competition.
Product technology content is low, the varieties of a single PVC pipe enterprise original competitive advantage is the price was lower than those of polyethylene, polypropylene pipe, and the rise in raw material to make it in a passive situation, provides entry for competitors. In recent years, the market has also begun to enter the urban and rural supply and drainage pipes and fittings market. And mark-up than PVC, polyethylene resin production cost pressure is not big, again without the lead question, added more competitive advantage, to say the PVC pipe enterprises is at a position with problems we face at home and abroad.
Actively adjust to recapture the market
From the trend of world plastic market, the high price of raw materials will continue for some time. But plastic pipe material due to its consumption characteristics, price space is relatively small, in the hope of raw material prices, to solve the operating pressure is a drop in the bucket, and can't fundamentally get rid of passive situation, must adjust the marketing strategy.
The first is to shift from product price competitiveness to brand competitiveness, strengthen the ability to deal with emergencies, and build a competitive fortress. The indications are that domestic plastic pipe production enterprises have entered the era of micro-profit, and to win the sustainable development space, enterprises should establish brand image as soon as possible. Large enterprises can improve the cost of raw materials by optimizing production management ability. For small and medium-sized enterprises, it is a good idea to combine the raw materials to reduce the production cost.
Second, strengthen international trade and expand the world market. Compared with the domestic PVC pipe market conditions, domestic plastic pipe products have the advantage of price in international market and are more and more valued, and have relatively high profits.
Third, we should step up efforts to develop new products and open up new profit points. The application of plastic pipe in China has many blank fields compared with the advanced countries. This is the new market volume space, such as the research and development of plastic hose products. The current domestic plastic tubing production mainly focus on the hard plastic tube, and involves the plastic hose production enterprises is relatively small, so the market is relatively broad, especially high technology content of hose, its competitors, less product high profit margins.
Fourth, improve marketing innovation ability. In the past, the domestic plastic pipe enterprises mostly adopt the marketing promotion strategy of industrial products. In fact, from the essential characteristics of plastic tube products, some plastic pipes, especially civil products, may take the marketing and promotion strategies of consumer products and establish brand names. In view of the current sales channels of domestic plastic pipe enterprises, we should accelerate the construction of the network and enhance the promotion of market terminals, such as cooperation with large building materials supermarkets.
Editor's conclusion:
To sum up, the plastic pipe is likely to come into China since 2014, one of the biggest industry storm, some 30 years of business model and rules, may be in the media, consumers, and the industry situation is broken, be reversed. At the same time, huge business opportunities will focus on brands, strengths, ethical bottom lines, innovative enterprises and partners. More than 5,000 plastic pipe production companies in China will be determined to live and die by competition.
Perhaps, for a year or two, China's plastic pipeline industry will be another.
